National Funding 2022 Review: Flexible Loans for Businesses That Need Quick Capital

National Funding 2022 Review: Flexible Loans for Businesses That Need Quick Capital

Editor's Rating

We recommend National Funding’s small business loans for borrowers who have fair to average credit, operate profitable businesses and desire flexible lending.

Good for

  • Businesses that can pay off loans quickly.
  • Businesses that want fast funding.
  • Business with fair to poor personal credit.

Bad for

  • Businesses who like to shop around for options.
  • Businesses with excellent credit scores.
on LendingTree's secure website
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Editor's Rating

We recommend National Funding’s small business loans for borrowers who have fair to average credit, operate profitable businesses and desire flexible lending.

Good for

  • Businesses that can pay off loans quickly.
  • Businesses that want fast funding.
  • Business with fair to poor personal credit.

Bad for

  • Businesses who like to shop around for options.
  • Businesses with excellent credit scores.
on LendingTree's secure website
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National Funding could be a good choice for small business owners who have fair to average credit, but want quick access to capital.

National Funding offers short-term business loans and equipment financing and could be a good option for borrowers with seasonal cash flows. The lender provides incentives for early payoffs, as well as the option to extend loan terms. Specifically, borrowers can receive discounts for early loan payoff, an attractive feature that could save you money in the longer term.

National Funding review: Who should apply?

If you run a profitable business that needs quick access to capital, National Funding is worth exploring. This lender offers unsecured short-term funding for profitable businesses, making it well-suited for short-term emergency funding needs. And with its low credit score requirements, National Funding can be a particularly viable option for business owners with less than stellar credit. However, the weekly and daily payments common with term loans may be a burden for businesses that lack substantial cash flow.

The pros of National Funding

One of the major selling points of National Funding is that it rewards borrowers who pay off their loans early. Equipment financing customers who pay off their total balance early are entitled to a 6% discount off their last balance amount, while borrowers who obtain a working capital loan and pay it off within the first 100 days of their contract will automatically receive a 7% discount off their total remaining balance. These amount to substantial discounts for those borrowers who are able to take advantage of them.

In addition, National Funding also advertises that its credit requirements are lenient in comparison to other lenders. This is because National Funding places more emphasis on your business's ability to repay its debts than its credit profile, which helps applicants with fair to average credit scores qualify for funding.

Plus, National Funding offers unsecured business loans, which means that businesses will not need to place any specific assets at risk when obtaining funding.

The cons of National Funding

Borrowers browsing the lender's website won’t find much information about specific loan rates. During our review, we found no way for borrowers to see their estimated loan terms without submitting an application. This makes the lender less than ideal for rate shopping.

National Funding requires no down payment, which means that businesses will be able to finance 100% of the costs of the equipment or loan. While this may sound positive, it means you’ll need to take out a larger loan, which means higher payments and more interest in the long term.

Finally, while collateral isn’t required, all loans will need to be personally guaranteed by the borrower, which renders business owners personally liable in the event their business is unable to repay its debts.

Final thoughts

National Funding offers an easy short-term solution for credit challenged borrowers who need quick funding. If, however, you have a great credit profile and wish to shop around for the best rate, check with other lenders before using National Funding — it's difficult to obtain an exact rate quote without applying for a loan. Borrowers who have quick funding needs and are turned away elsewhere could consider National Funding, as the lender focuses on your ability to repay loans rather than your credit profile.

Eligibility criteria

To qualify for funding with National Funding, you must meet the following criteria.

  • Minimum personal credit score: 500
  • Minimum personal credit score for equipment financing: 575
  • Minimum annual revenue: No minimum
  • Minimum time in business: 6 months

In addition to personal credit, borrowers will be evaluated based on their business's monthly gross revenues and time in business.

Features, rates and terms

National Funding offers small business loans and equipment financing. Here is a look at the terms and amounts of those products.

Amount
Term
Rate
Fees
Repayment options
Term loan$5,000 - $500,0004 - 24 monthsMinimum 1.1 factor rateOrigination fee of up to 2%Daily, weekly, biweekly, monthly
Equipment financing$5,000 - $150,00024 - 84 months4.99% simple interest1% of equipment costMonthly, quarterly, semi-annual and annual

National Funding application process

National Funding accepts applications online. If approved, borrowers should expect to receive funding within one business day, assuming they've submitted all the relevant documents. Customer service representatives are available Monday through Friday, between 7:30 a.m. and 4:30 p.m. PT (10:30 a.m. to 7:30 p.m. ET) by calling 800-294-1702.

National Funding also has funding specialists available for assistance, either by phone (888-733-2383) or email ([email protected]).

Borrowers can apply by hitting the "Apply Now" button on the National Funding home page. Be prepared to provide the following information:

  • Personal contact information
  • Business contact information
  • Tax identification number
  • Annual gross sales figures

If approved, the funds should be directly deposited into your business checking account within one business day, though it may take longer depending on your bank's policies.

How does National Funding compare with other lenders?

National Funding can be a good option for small businesses that can pay back loans quickly. It may also be a solid choice for small business owners who have fair to average credit, as its loan terms can be lower than traditional lenders. However, it's always worth checking out competitors. Here are a few alternatives to National Funding and how they stack up.

National Funding vs. Currency

on Currency's secure website
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Currency is an online financing company that provides loans to agriculture and construction businesses. Its equipment loans are capped lower than National Funding, at up to $100,000 . Currency's starting interest rate is also higher, at 7.5% - 12.5%. Currency comes out ahead of National Funding in two areas: low fees and loan terms. With Currency, you'll pay a flat $125 documentation fee, plus any other title or filing fees for the equipment. And while National Funding caps loan terms at 24 months, Currency offers loans from 2 to 5 years.

National Funding vs. Funding Circle

on Funding Circle's secure website
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Funding Circle could be a good option if you're looking for a larger loan, as the company offers loans from $5,000 - $500,000. Funding Circle also offers a more flexible repayment period than National Funding: Its loans start at 6 months and can be spread out up to 60 months. National Funding offers a tighter window, at just 6 - 60 months months. However, while that payment period is longer, your interest rate on a Funding Circle loan could be quite high (up to 19.49%%). Funding Circle also charges an origination fee, which ranges from 3.49% to 6.99% of the loan amount.

National Funding vs. Taycor Financial

on Taycor Financial's secure website
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Taycor Financial is a California-based lender that offers working capital loans and equipment financing for small businesses. The biggest advantage Taycor Financial has over National Funding is the amount you can borrow — while National Funding caps its loans at $500,000, Taycor Financial offers loans up to $500,000. Taycor Financial also offers longer loan terms than National Funding, with the longest being equipment financing for up to 84 months.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

on LendingTree's secure website
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